They have acquired Casper Pharma, a formulation company based out of Hyderabad. They get a formulation facility with a capacity of 1.2 billion tablets/capsules. They have filed 2 ANDAs and are ready for USFDA inspection which is expected to happen within 6 months. They plan to file another 15 ANDAs in FY23 in partnership with Rising Pharmaceuticals.
They currently have 77 products in Phase 1, 35 products in Phase 2 and 5 products in Phase 3. They also have 5 commercialized products. In Specialty Chemicals, they have 3 commercialized products and 1 product in development.
They are expecting about 10-15% growth in FY23. EBITDA margins are expected to be at 40%/
Raw material costs are still high. They have no visibility on when it will come down but the prices are not going up either which is a good sign.
A couple of customers who used to take intermediates from them have expressed that they would like to forward integrate into APIs. They are also interested in lifecycle management but both these businesses will take 2-3 years to show results.
They will be spending about ₹250-300 Cr during the year for capex. They have started replacing the old blocks in the Suryapet facility. The moving of the R&D center has not started yet, they are going to wait as there is no urgency. The additional block in Pashamylaram will be started in 3-4 months.
In Casper Pharma, the products have been chosen by Rising Pharma as they own the ANDA. They are normal products unlike Suven’s product portfolio which has niche small volume products.